Mortgage industry software developer Ellie Mae’s Encompass loan origination system has been experiencing a series of outages and service disruptions, likely caused by “an external malicious attack characteristic of a distributed denial of service,” according to the company.
The outages have delayed loan closings and left workers idle at quarter’s end — a critical time for lenders, National Mortgage News reported.
The closing delays have forced lenders to pay for rate lock extensions and hedging losses, while home closings funded by purchase mortgages have also been delayed, the news outlet said.
Ellie Mae said there is no evidence of any data breach and that client data and personal borrower data remain secure.
The company is providing updates every 30 minutes until service is restored at elliemae.com/network-status.